Under the GST regime implemented from July, over 1,200 products and services have been fitted into one of the 5, 12, 18 and 28 per cent tax slabs based on the principle of keeping the total tax incidence at almost the same level as previously as well as keeping revenue collections neutral.

Jaitley said some of the items should never have been in the 28 per cent slab and the GST Council in the last 3-4 meetings has slashed rates on over 100 items, thereby bringing them down either from 28 per cent to 18 per cent or from 18 per cent to 12 per cent.

"We have been gradually bringing them down. The whole idea is, as your revenue collections neutralise we must prune it and that's the pattern in which the Council has so far been functioning. I see that as a future guide as far as the Council is concerned," Jaitley said at India Today Conclave here.

The GST Council had at its last meeting in October adopted a concept paper that laid down guidelines for changes in rates. According to this, no manufactured goods should be given outright exemption as this would hinder the Make in India initiative. States should opt for direct subsidy transfers if they wanted to reduce tax incidence on any item.

For the 28% bracket, the paper said goods of mass consumption or public interest, intermediate goods and those predominantly manufactured in the unorganised MSME sector and export-related items could be considered for review, subject to revenue implications.

This would mean GST rates stabilising over a period of time with more need-based items first in line for tax cuts.

Tax experts said the highest bracket shouldn’t have too many items.

“The 28% category should ideally be limited to very few products, which qualify as luxury or sin goods, in line with recommendations in chief economic adviser Arvind Subramanian’s report on the GST rate structure,” said Pratik Jain, indirect tax leader, PwC India.

“Any successful GST regime is based on a wider tax base and moderate tax rates. Therefore, most of these products should be gradually brought down to 18%. Also, there is a case for reduction of tax on services from 28% to 18%.”

The GST Council is scheduled to meet next on November 10. The Council last month approved an Approach Paper to be followed by the fitment committee while deciding on future rate revisions.

He said consumers are noticing the tax paid on goods they buy in the GST regime as previously excise duty was embedded in the price of the product.

Under the GST regime, which has subsumed more than a dozen central and state levies including excise duty, service tax and VAT, is a more transparent tax.

The product, in the previous regime, "didn't show you are paying so much excise (duty)," he said.